Net Asset Value(s)

RNS Number : 0695I

India Capital Growth Fund Limited

04 December 2015

 



4 December 2015

India Capital Growth Fund Limited (the "Company" or "ICGF")

Net Asset Value statement at 30 November 2015

Net Asset Value

The Company announces its Net Asset Value per share as at 30 November 2015 was 78.32 pence.

In November the Net Asset Value (NAV) was down 0.1% in Sterling terms, whilst the BSE Mid Cap Index was down 0.3%, delivering an out performance against the notional benchmark of 0.2%. Against Ocean Dial's Composite Index, ICGF out performed by 0.4%. In local currency terms, the NAV was up 0.4% for the month.

Portfolio update

Positive attribution to the portfolio's performance came from Motherson Sumi (up 17.6%), Federal Bank (up 8.2%), KPIT Technologies (up 12.5%) and Kajaria Ceramics (up 4.2%). Negative attribution came from Ajanta Pharma (down 14.3%), Emami (down 13.4%) and Lupin (down 7.4%).

The Company also announces its fully diluted NAV per share as at 30 November 2015 was 72.55 pence. 

The above fully diluted NAV assumes that the 37,500,710 Subscription Shares rights will be exercised at their subscription price of 61 pence. The Subscription Shares have a subscription date of 6 August 2016. However, if at any time after 6 August 2015 the average middle market quotation for an Ordinary Share for at least 10 consecutive trading days is 5% or more above the subscription price, the Company has the right, (but not the obligation) by an announcement on a RIS to change the subscription date for exercise of the Subscription Shares to an earlier date (being a date not less than 30 days after the Company's announcement) that it is bringing forward the subscription date. In that event an announcement will be made on a RIS and a notice of the revised subscription date will be given to all holders of the Subscription Shares on the register at 5.00pm on the date falling three business days following the announcement of the revised subscription date.

Market and economic update

Indian markets lacked clear direction in November; the BSE Sensex fell 1.9% whilst the BSE Mid Cap Index was up fractionally, 0.1%. Foreign institutions were net sellers to the tune of US$1bn, while domestic institutions supported the market adding US$1.3bn. The Rupee depreciated 2.1% against the US Dollar in anticipation of a US rate rise, whilst weakening 0.4% against Sterling.

Politics remains front of mind following the BJP's thumping in the Bihar State elections. Theories abound as to the cause, but the reality was that the opposition successfully held together a coalition which made winning as a single party tough. The BJP won the largest share of the vote with an increased share but this was not enough. The Government will need to figure out a way of combatting this threat in future, with more economically relevant State elections due in 2016. The leadership responded well, reinforcing its narrative on economic reform by announcing an increase in foreign direct investment limits in 15 sectors and reiterating its intention to work with the Congress Party to ensure the Winter Session of Parliament is productive. Modi blessed the UK with a whistle stop trip which included "selling out" Wembley Stadium and securing £9bn of commitment from UK plc, a decent number but below expectations. The chemistry between the PMs was said to be excellent.

GDP growth for Q2FY16 was 7.4% compared to 7.1% in the previous quarter and 8.4% a year ago, boosted by stronger than expected manufacturing data. September CPI inflation increased to 5.0% in August led by food prices and a higher base effect. Inflation remains on track as does monetary policy with The Reserve Bank keeping rates unchanged but suggesting further accommodation is potentially available. The 7^th Pay Commission announced an overall increase in public sector pay of 23.6%.

Sector	No. of Companies	% of Portfolio
Financials	9	27.2%
Consumer Discretionary	5	14.8%
Industrials	6	14.3%
Materials	5	12.7%
Healthcare	4	10.3%
Consumer Staples	4	9.8%
IT	3	6.4%
Total Equity Investment	36	95.5%
Net Cash		4.5%
Total Portfolio	36	100.0%
Top 20 holdings as at 30 November 2015
Holding	Sector	% of Portfolio
Jyothy Laboratories	Consumer Staples	4.4%
Dewan Housing	Financials	4.4%
Kajaria Ceramics	Industrials	4.3%
Federal Bank	Financials	4.2%
Yes Bank	Financials	3.9%
Divis Laboratories	Healthcare	3.8%
PI Industries	Materials	3.7%
Max India	Financials	3.6%
Dish TV India	Consumer Discretionary	3.5%
Indusind Bank	Financials	3.5%
Motherson Sumi Systems	Consumer Discretionary	3.4%
Exide Industries	Consumer Discretionary	2.9%
City Union	Financials	2.9%
Tech Mahindra	IT	2.8%
Berger Paints India	Materials	2.8%
Sobha Developers	Financials	2.8%
The Ramco Cements	Materials	2.6%
Mahindra CIE Auto	Consumer Discretionary	2.5%
Balkrishna Industries	Consumer Discretionary	2.5%
Ajanta Pharma	Healthcare	2.5%
Portfolio analysis by market capitalisation size as 30 November 2015
Market capitalisation size	No. of Companies	% of Portfolio
Small Cap (M/Cap <INR60bn)	12	24.2%
Mid Cap (INR60bn <M/Cap<INR250bn)	16	47.3%
Large Cap (M/Cap > INR250bn)	8	24.0%
Total Equity Investment	36	95.5%
Net Cash		4.5%
Total Portfolio	36	100.0%

 

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